I have a realtor friend who has 20+ years experience.
Had not seen him at the YMCA in six weeks.
I asked him yesterday where he has been?
He is working 24-7 selling homes NOW...."Making hay while he can"
He said "After Jan 14th, next to no one will be able to buy a home."
New mortgage laws will be enforced...
Here is jest of it..the really bad one is "Debt to Income Ratio, Ability to pay the Mortgage"
Entire article here...
http://www.thecreditsolutionprogram.com/how-new-mortgage-rules-will-affect-homeowners/
Under the new 2014 mortgage rules, lenders are assumed to provide what the CFPB calls a ?qualified mortgage.?
By definition, lenders must: Limit points and fees to no more than 3% of the loan amount, not offer risky loans with terms that extend beyond 30 years, promote ?teaser rates? that are interest only, or are based on similar risky terms like negative amoritization schedules that eventually lead to significantly higher monthly payments.
Though having a down payment and positive credit history will still be a key aspect to securing the historically low mortgage interest rates advertised, beginning in January of next year under the new mortgage rules, your debt to income ratio is the deciding factor as to whether you?ll be approved for a mortgage or refinance.
By law, the new mortgage rules require that lenders ensure that you are financially able to make your mortgage payments and it?s all based on keeping your housing costs reasonable in relation to your income, and other debt obligations.
Under the new ?Ability-to-Pay Rule,? borrowers cannot exceed a 43% debt to income ratio, which is your total monthly debt divided by your total monthly gross (before tax) income.
For a person or family with an $80,000 a year salary, monthly debt shouldn?t exceed about $2,800. Further, borrowers must prove financial standing, with current paycheck stubs, credit history, employment status, bank statements, and proof of other assets.
